Min­istry to ex­plain so­lar mis­la­bel­ing in­ci­dent to EU

The China Post - - BUSINESS -

Eco­nom­ics Min­is­ter Deng Chenchung said Fri­day that the gov­ern­ment will ex­plain a re­cent so­lar energy prod­uct mis­la­bel­ing in­ci­dent to the Euro­pean Union in a bid to avoid anti-dump­ing and an­ti­sub­sidy tar­iffs likely to be im­posed by the EU.

In May, the EU launched an in­ves­ti­ga­tion against Tai­wanese and Malaysian so­lar panel ex­porters af­ter Chi­nese ex­porters were ac­cused of evad­ing the levies by ship­ping so­lar pan­els to the Euro­pean bloc through Tai­wan and Malaysia.

One Tai­wanese im­porter has been ac­cused of im­port­ing so­lar pan­els from main­land China and then la­bel­ing the prod­ucts as “made in Tai­wan” be­fore selling them to the EU for tar­iff eva­sion.

An­swer­ing ques­tions raised by rul­ing Kuom­intang law­maker Yang Chi­ung-ying in a ses­sion of the Leg­isla­tive Yuan, Deng said that Tai­wan has never been in­volved in any illegal sales of so­lar energy prod­ucts to the EU and the ac­cused Tai­wanese im­porter’s con­duct was sim­ply an iso­lated, un­for­tu­nate case.

Deng said that the gov­ern­ment will pro­vide the EU with ev­i­dence which will show most Tai­wanese so­lar energy prod­uct ex­porters abide by in­ter­na­tional trade reg­u­la­tions, adding that the gov­ern­ment will not al­low such a black sheep to tar­nish the rep­u­ta­tion of Tai­wanese ex­porters and hurt Tai­wan’s ex­ports.

Premier Mao Chi-kuo said in the same leg­isla­tive ses­sion that the Tai­wanese im­porter who mis­la­beled China-made so­lar energy prod­ucts will face se­vere pun­ish­ment, while the gov­ern­ment will try its best to clar­ify the whole sit­u­a­tion to the EU.

Ac­cord­ing to the Of­fi­cial Jour­nal of the EU re­leased in May, the Ger­man firm So­larWorld re­quested the in­ves­ti­ga­tion and pre­sented the Euro­pean Com­mis­sion with suf­fi­cient ev­i­dence that Chi­nese so­lar panel ex­porters used Tai­wan and Malaysia to skirt anti dump­ing and anti-sub­sidy tar­iffs and such prac­tices have “un­der­mined” the ex­ist­ing trade mea­sures.

The So­larWorld-led trade group EU ProSun, has es­ti­mated that cir­cum­ven­tion has cost the EU 500 mil­lion eu­ros ( US$560 mil­lion) in lost cus­toms rev­enue.

Since the probe was launched in May, the Min­istry of Eco­nomic Af­fairs said that the EU was sched­uled to com­plete the in­ves­ti­ga­tion in nine months.

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